TO: Mayor and City Council
FROM: Philippe Eskandar, City Manager
BY: Isidro Figueroa, Community Development Director
Alexis Huerta, Management Analyst
DATE: July 25, 2025
SUBJECT: AWARD OF PROFESSIONAL SERVICES AGREEMENT
WITH WILLDAN FINANCIAL SERVICES FOR A
DEVELOPMENT IMPACT FEE STUDY
STRATEGIC PLAN CRITICAL SUCCESS FACTORS
Efficient, Responsive, and Effective City Services
Engaged and Connected Residents
Fiscally Responsible and Transparent City Government
BACKGROUND
The City is exploring the implementation of Development Impact Fees (DIFs) to ensure that new development contributes its fair share toward the costs associated with expanding infrastructure and public services. Development Impact Fees are one-time charges imposed on new development projects to mitigate the impacts of growth on essential City infrastructure systems.
Revenue generated from DIFs may fund capital improvements to support growth, including but not limited to transportation infrastructure, parks, public safety facilities, and other civic improvements.
While DIFs are commonplace in many cities, the City of San Marino has not previously undertaken a DIF Study. On November 13, 2024, the City Council adopted an updated Housing Element and comprehensive Zoning Code amendments to comply with state housing mandates and support sustainable growth. In alignment with these planning efforts, and in anticipation of future development and its associated impacts on public infrastructure and services, the City seeks to establish a fair, transparent, and legally defensible DIF program.
Gretchen Shepherd Romey, Mayor
Tony Chou, Vice Mayor
Hunter Chang, Council Member
John Chou, Council Member
Calvin Lo, Council Member
DISCUSSION
To support the implementation of a legally defensible and fiscally responsible DIF program, the City issued a Request for Proposals (RFP) seeking qualified subject matter experts with demonstrable expertise in impact fee studies, fiscal analysis, and public finance. The purpose of the study is to evaluate the impacts of future development on the City’s infrastructure systems and to recommend a fee structure that ensures that new developments pays its proportionate share of capital costs, while ensuring full compliance with the California Mitigation Fee Act (Government Code Sections 66000 et seq.). The resulting fees will help fund new development’s proportionate share of public facilities without placing an undue financial burden on that development.
The scope of work includes, but is not limited to:
• Assessment of Public Facility Needs: Identify current and future infrastructure needs, including transportation, parks, utilities, and public safety, and estimate associated capital costs to accommodate future development.
• Nexus Analysis: Establish the proportional relationship between new development and the impact on public facilities, in accordance with the Mitigation Fee Act (California Government Code Section 66000 – 66025; also known by the Assembly Bill “AB 1600”)
• Fee Development: Develop a proposed fee schedule that balances cost recovery with the City’s growth management objectives and is aligned with the City’s Capital Improvement Program.
• Prepare a draft and final DIF Study and assist in the development of ordinances, resolutions, and procedures necessary for program adoption and implementation.
In response to the RFP, staff received proposals from Willdan Financial Services, DTA Public Finance Inc., and Matrix Consulting Group, Ltd. The proposed not-to-exceed costs were as follows:
• DTA Public Finance Inc. $81,985
• Matrix Consulting Group, Ltd. $22,500
• Willdan Financial Services $59,880
After a thorough evaluation based on qualifications, approach, relevant experience, understanding of the City’s needs, and cost-effectiveness, staff determined that Willdan Financial Services was the most qualified firm to undertake the DIF Study.
While all three firms demonstrated experience in preparing DIF studies, Willdan distinguished itself through its technical expertise, tailored approach, and strong understanding of the City’s goals and objectives. Willdan’s proposal included a clear and methodical plan for conducting the required nexus analyses, a strong public engagement strategy, and a high level of responsiveness to the scope of work outlined in the City’s RFP.
Based on the results of the proposal evaluation process, staff recommends awarding a two-year contract to Willdan Financial Services in the amount of $59,880 for the preparation of a DIF Study. Approval of this agreement will allow the City to develop a fair and objective fee structure to support future growth and infrastructure needs.
It is anticipated that the entire process from notice to proceed to consideration for adoption by City Council should take approximately six to seven months.
FISCAL IMPACT & PROCUREMENT REVIEW
A FY 2025-26 budget adjustment is needed in Account #101-14-4150-0000 in the amount of $59,880. The General Fund is estimated to end FY 2025-26 with a change in fund balance of $35,965. A budget adjustment in the amount of $59,880 will require the use of General Fund unassigned fund balance in the amount of $23,915 to cover the cost.
The Finance Director has reviewed the staff report for compliance with San Marino City Code §02.06.05.B.5.
LEGAL REVIEW
The City Attorney's office has reviewed and approved as to form.
RECOMMENDATION
Staff recommends the City Council approve the contract and authorize the City Manager to execute the agreement. If the City Council concurs with staff’s recommendation, an appropriate motion would be:
“I move to approve the contract with Willdan Financial Services, approve the necessary budget adjustments, and authorize the City Manager to execute the agreement.”
ATTACHMENTS
1. Professional Services Agreement with Willdan Financial Services